Blockchain Technology And Its Legal Advantages
Privacy, trust, reliability are the words largely affecting all of us, either in personal or professional life. Blockchain is a concept that comes with a promising claim that it will keep us covered in all of these aspects effectively. Well then, what is this blockchain? Is it beyond the understanding of the common man or only Coders or computer science disciples can grasp in.? Well, the answer is a big no.
Basic Idea About Blockchain
A blockchain is a peer to peer transfer of digital assets without an intermediary involved. The data in the case of blockchain is managed by a cluster of computers that are not known to be owned by a single entity. In this way it is decentralized. The removal of the intermediary makes a blockchain desirable. Since it reduces the reliability issue, it is not centralized. So, we do not have to worry about the unaccountable data. These are immutable records of data stored in forms of blocks that are securely linked to each other like a chain. If any of the blocks is fiddled, then the whole chain gets disturbed, and hence termed as ‘blockchain’. It works on three frameworks namely Cryptography; Proof of work and Decentralised network. Blockchain and other distributed ledger technologies create a trustworthy and transparent record by allowing multiple parties to a transaction to verify what will be entered into a ledger in advance. No entity can transform the nature of the data in these ledgers.
It is said that bitcoin is to blockchain like what an email is to the Internet. Thus, bitcoin is just one aspect of blockchain. Blockchain is used for many purposes, such as using in the voting system, ensuring a non-biased outcome, used in E-commerce platforms, bank transactions, hospital records and transactions, inland buying activity, etc.
Legal Advantages of Blockchain Technology
With the advent of blockchain technology, the people in the legal fraternity are responsible to act as a guardian to ensure that nothing goes wrong. Some of the Legal advantages of blockchain technology are :
Smart Contracts- They are nothing but a regular traditional contract, except for the fact that nowadays these contracts will be in the form of tiny computer programs that shall be stored inside a blockchain. All the steps in a contract will be handled by a computer program making sure that all steps are conducted mechanically.
Intellectual Property – One of the characteristics of information stored in the blockchain is that it is time-stamped. Thus, blockchain ensures a smooth registration process, details of creatorship, licensing, and accountability where the users can always check about the creators of a particular product. The ledger in a blockchain will show who owns the work or the product, thus increasing the reliability of a product, and goodwill in trademarks.
Dispute resolution – There are several grey areas in the world of Dispute resolution. at the point of Inception, a jurisdiction issue extents the enforceability. All these difficulties will be resolved quickly if we rely upon an untampered set of data provided by the blockchain technology.
Corporate transaction- a colossus of data created and stored is what first comes into our mind when we think of the corporate transaction Some of this data gets forged, gets lost, or is wrongly tabulated. With the help of blockchain technology, one can ensure that the corporate transactions are executed in a trustable decentralized network, that increases the reliability of the data. Further, it can be retrieved easily whenever the situation demands, hence lessening the third-party dependence.
Blockchain technology lessens the burden from the shoulders of the legal fraternity making their work easier, as it reduces the blame game factors. However, there is likely to have some demerits too. Recent events of Twitter Accounts being hacked into famous personalities, in the name of Bitcoin can be taken as an example. It is these situations that call for a lawyer’s work. Thus, we have to understand its detailed working, so that we can help the society to thrive with the boon of this unique technology.
ABOUT THE AUTHOR
Saisneha Das is currently pursuing Masters in Cyber Law and Information Security, National Law Institute University, Bhopal.
They can be contacted at email@example.com or https://www.linkedin.com/in/saisneha-das-2505871a0/
Edited By: Swathi. Ashok. Nair.
DISCLAIMER BY LEGAL ARMOR
We at Legal Armor do not endorse the Authors' views and are in no way responsible for the said views. We are just publishing the Write-ups as blogs with just light editing, and are in no way responsible for any legal claims. Legal Armor shall not be liable for any plagiarized content.